PROFESSIONAL MONEY MANAGEMENT

We’ve all heard the term, “Jack of all trades, master of none”. This is especially true when it comes to investing. Many investors try to master the art of buying and selling equities on top of working 40 to 50 hours per week in their trade. The reality, however, is that investing for retirement should not be treated as an afterthought or a hobby. Relying on a professional money management firm should produce far superior results. Here are three common mistakes that may be avoided by using a money manager:

1. EMOTIONAL MISTAKES

There is a relatively new field of psychology called “behavioral finance”. Behavioral finance involves the study of how and why people make irrational financial decisions. The majority of the time, these decisions are based on emotions such as:

Fear

Greed

Egos

Emotional mistakes can be eliminated by working with professional money managers who actively monitor your portfolios. They make decisions based on facts, not emotions, with your desired goal in mind.

2. TIMING MISTAKES

Most investors don’t have the time required on a daily basis to monitor market trends, statistics, global events and more. Research is the key to making educated investment decisions. Timing mistakes occur when research of certain equities, or of the market as a whole, is random due to an investor’s inability to constantly monitor every situation. Again, using a professional money manager in this capacity should produce much better results.

“The investor’s chief problem, and even his worst enemy is likely to be himself.”

-Benjamin Graham

3. LACK OF EXPERIENCE MISTAKES

Just as you wouldn’t call your CPA to fix a plumbing issue in the house, investing properly requires experience and expertise in the field of finance. Unfortunately, there are several large firms that encourage investors to have a DIY attitude towards saving for retirement. There are numerous websites that allow you to establish your own trading accounts, and even tempt you to trade on margin. For a small percentage of the population, this might work. But for the majority, this is a horrible idea. Experience in investing is key to making good decisions. Don’t be fooled by what you see on TV. DIY investing may also result in huge losses during market downturns.

Quick Links

The content is developed from sources believed to be providing accurate information.
The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals
for specific information regarding your individual situation. Some of this material was developed and produced by
FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named
representative, broker - dealer, state - or SEC - registered investment advisory firm. The opinions expressed and
material provided are for general information, and should not be considered a solicitation for the purchase or
sale of any security.

Copyright 2019 FMG Suite.

Copyright 2018 Wealth Watch Advisors Wealth Watch Advisors (WWA) is an SEC registered investment advisor and only transacts business in states where it is licensed to do so or exempt from registration. Please note that registration with the SEC does not denote a particular level of skill of the advisor or imply an endorsement by the SEC. All information provided is intended to be general in nature and does not represent personal financial advice. This site is not a solicitation or an offer to invest or purchase any specific product or service. All investment involve risk of loss and are not FDIC insured or guaranteed by any governmental agency or organization.